Cryptocurrency regulation is becoming a significant issue in international politics. Each country chooses its approach, determining the role these digital assets will play in its economy.
Cryptocurrency Regulation by World Powers
Some governments impose restrictions on crypto assets to reduce the enthusiasm surrounding them. In the USA, for instance, some states require crypto exchanges to hold surety bonds or equivalent sums in fiat currency. This increases business costs, which should temper public expectations regarding the assets' ability to generate wealth.
Italy: Tax Hikes and Their Impact
In October 2024, the Italian government announced plans to increase its capital gains tax on crypto transactions from 26% to 42%. The new law, set to take effect in 2025, applies only to transactions exceeding €2,000. Following internal political disputes, the tax increase may be revised, and there is a discussion of potentially returning to the initial 26% tax rate.
Czech Republic: New Incentives for the Crypto Market
In the Czech Republic, the approach to cryptocurrency taxation is quite the opposite. A new law exempts cryptocurrency held for more than three years from taxes. This condition is expected to curb speculation and stabilize the market. These rules will come into force at the beginning of 2025.
Various countries' regulations highlight the need to balance the growth of the cryptocurrency sector with its control. Despite attempts by some governments to restrict the impact of cryptocurrencies, the market itself continues to grow, and approaches to taxation continue to evolve.
